The Commerce Commission is investigating the likely impact on competition in New Zealand if major wine makers Montana Group (NZ) Limited and Corbans Wines Limited were combined into one company.

Commission Chair John Belgrave said that the Commission has received an application from Montana for clearance to acquire all of the shares in Corbans.

The major shareholders in Montana are Lion Nathan Enterprises Limited and interests associated with Montana's Chairman, Peter Masfen. Corbans is a wholly owned subsidiary of the DB Group Limited.

Both Montana and Corbans own vineyards, buy grapes from independent growers, produce wine and distribute wine in New Zealand and overseas markets. In addition, Montana also distributes wine for other New Zealand and foreign wine companies.

The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market in New Zealand.

Parties can apply for a clearance, which the Commission will grant if it is satisfied that dominance is not acquired or strengthened. The Act gives the Commission 10 working days to make its decision, but allows for extensions of time if necessary. Working day 10 will be August 25.

A clearance, if granted, protects an acquisition from court action under the Act.

Media contact: Vincent Cholewa Senior Advisor Communications

Phone work (04) 498 0920